ATOM Drops After Testing Major Resistance Zone
Cosmos (ATOM) witnessed a sharp rejection after testing a critical resistance area, signaling a potential shift in short-term momentum. The price touched $4.89 before reversing and dropping to $4.72, marking a 3.5% decline from the resistance level.
After a strong rally from the $4.10 support zone, ATOM entered a consolidation phase near the red resistance area around $4.85–$4.90. The price attempted a breakout but failed to sustain, triggering selling pressure.
According to the 4-hour chart, key support levels lie near $4.40 (grey zone) and $4.25 (green zone), while a major demand zone exists at $4.10 (brown zone). A deeper correction could target these levels if bearish momentum persists.
“The $4.90 level is a critical supply zone. A clean breakout above this level could open doors for $5.20 and $5.50 targets. However, failure to hold above $4.80 suggests sellers are still active”According to BITX .
Trading volume remains relatively stable, but the lack of strong bullish candles near resistance highlights exhaustion. If ATOM fails to reclaim $4.80 soon, it might retest the $4.40–$4.25 range before any bullish continuation.
What’s Next for ATOM Price?
For bulls, reclaiming $4.90 is essential to resume the uptrend. Conversely, a breakdown below $4.40 could accelerate the decline toward $4.10.
Key levels to watch:
- Resistance: $4.89–$5.00
- Immediate Support: $4.40
- Major Support: $4.10
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.